Agrochemicals industry in Brazil to grow at 6% until 2022

Agrochemicals market is valued at USD 9.56 billion in Brazil and is expected to grow at a rate of 6% within the time period of 2017-2022 because of the increasing demand for land productivity and food production. However, agrochemicals induced health and environmental concerns might create risk for market growth.

  • Definition / Scope
  • Market Overview
  • Market Risks
  • Top Market Opportunities
  • Market Drivers
  • Market Restraints
  • Industry Challenges
  • Technology Trends
  • Pricing Trends
  • Regulatory Trends
  • Other Key Market Trends
  • Market Size and Forecast
  • Market Outlook
  • Distribution Chain Analysis
  • Competitive Landscape
  • Key Market Players
  • Strategic Conclusion
  • References
  • Appendix

Definition / Scope

Agrochemicals are chemical products such as pesticides, fertilizers used in agricultural farms in order to protect crops from pests and enhance crop production.  It exists in three forms i.e. liquid, powder and granular.

On the basis of the type of the product, it is categorized into fertilizers, pesticides, adjuvants, and plant growth regulators. Along with this, it is categorized into crop and non-crop based market on the basis of the application type.

Market Overview

South America is one of the world fastest growing agrochemicals market and is an important consumer and importer of agrochemicals. In the context of South America, Brazil is the largest agrochemicals consumer accompanying 40-50% of total consumption.

In Brazil, the market size of agrochemicals was valued at USD 9.56 billion in 2018. It is growing at the CAGR 4.71% from 2014-2019  and is expected to grow at the CAGR of 6% from 2017-2022. However, sales value was dropped by 7% in 2017 compared to 2016 because of the increasing use of illegal products and strong devaluation of real against US dollar 

Market Risks

  • Environmental concerns associated with hazardous use of agrochemicals

The uncontrolled use of the agrochemicals such as pesticides has reduced the number of weeds, shrubs, and insects. Along with this, pesticides have entered the water bodies such as ponds by runoff or leaching through soil and poses a threat to the aquatic form of life. 

  • Existing pesticide residue in food

A study conducted among 1,665 the food crops in Brazil has revealed that 29% of the crops contained the pesticides residue in exceed allowed level and contain unapproved pesticides. This is always a concern for the agrochemical manufacturers for their sustainability and growth.

  • Increasing human intoxication and deaths linked with agrochemicals

In the context of Brazil, the intoxication of pesticides among human has been doubled within six years and reached 4537 cases in 2013. Along with this, deaths due to the poisoning of agricultural chemicals was about 206 deaths.

In the same year, a crop duster used for spraying insecticide was reused in school which causes 30 school children and teacher in hospital. This incident indicates the health risks associated with the use of agrochemicals. It might be the risk for the growth of the agrochemicals market.

Top Market Opportunities

  • Worldwide leading manufacturers of food products

Brazil is one of the leading producer and exporters of fibers and food products. The country is expected to supply almost 40% of global food demand and accounted for over 30% of the total GDP of Brazil.  It is creating a favorable environment for the development and growth of the market of agrochemicals.

  • Equatorial climate

The climate of Brazil varies from hot and dry to humid and sticky, which is favorable for the growth of the insects, weeds, and fungi. This leads to the demand for the agrochemicals.

Market Drivers

  • Increased need for Land Productivity

Increasing population in Brazil is creating a huge demand for food products. However, available land for food production is limited. So, agricultural productivity is to be increased to meet the rising demand for food. This, in turn, is increasing demand for agricultural fertilizers.

  • Blooming population of Brazil

Brazil has the sixth largest population in comparison to other countries. It is expected to rise by 30% over three decades. This blooming nature is creating a demand for more food products and more agrochemicals are needed to fulfil this demand, which in turn develop the opportunity for the growth of the agrochemicals market in Brazil.

Market Restraints

  • Awareness and practice of farmers regarding pesticides use

A study conducted among farmers in Brazil has shown that almost 87.5% of farmers were aware of the harmful effects of pesticides but only 48.2% of farmers rarely used personal protective equipment while using it. Because of this, there is a high possibility of intoxication among the farmers which might restrain the growth of the agrochemicals market.

  • New technologies of control and integrated pest management

At the present context, various other techniques such as biological methods are also available for the management of the pest in the crops. This is the restraint for the agrochemicals market.

  • Availability of genetically modified pest-resistant seeds

Pest-resistant genetically modified crops, known as Bt crops, are developed which contain certain bacterias which are toxic to the insects which are known to destroy the crops. This type of maize seeds is grown in Brazil and Argentina. Invention and use of these seeds are the risks for the insecticides and other agrochemicals market.

Industry Challenges

  • Oligopolies market phenomenon

In the context of Brazil, Agrochemicals market is dominated by the few market players such as Syngenta, Bayer, Basf, etc. Almost 80.52% of the total market is concentrated by the top ten agrochemical companies. It is creating a challenge for the growth of other market players.

  • Trading restrictions

In Brazil, the list of products is prohibited from being exported to other countries. This prohibition might be the challenge for the growth of the agrochemicals market too.

Technology Trends

Along with the advancement in science and technology, new technological innovations are introduced in the agricultural pest management which has a potential influence upon the agrochemicals market is tabulated below:

Pricing Trends

The price of agrochemicals depends upon the type of chemicals either it is pesticides, fungicide or herbicides. Among all top ten agrochemicals being used in Brazil, beta-cyfluthrin cost the highest  and cost of other chemicals are summarized as follows:

Regulatory Trends

In Brazil, MAPA, ANVISA, and IBAMA are the major agencies responsible for the development of legislation and implementation of these laws related to the pesticides. Along with this, they are responsible for the evaluation of the impact of pesticides on the environment. It has adopted some of the following regulations and laws for the management of the agricultural chemicals market:

  • Technical Administrative Procedures for importing of agrochemicals

Ministry of Agriculture in Brazil has established new procedures for the import of agrochemicals. According to it, the chemicals to be imported to Brazil must be registered at Ministry of Agriculture and importer must be established at federal or state agency.

  • Law 7802 (Pesticide Law)

It regulates the experimentation, packaging, labeling, transportation, storage, advertisement, import, export, waste and disposal, classification, control of the pesticides and its components.

Other Key Market Trends

In Brazil, Syngenta has the highest market sales value of USD 1587 million and market sales of top 5 agrochemicals market players is presented below:

Market Size and Forecast

Market size of agrochemicals in Brazil is about USD 9.56 Billion in 2018 and is increasing at the rate of 4.71% from 2014-2019. However, its revenue has been decreased in the year 2017 while comparing it to the revenue of the previous year. It has been observed because of the decreasing value of the Brazillian Rales in terms of United States Dollars.

The market size of agrochemicals varies in accordance with the type of chemicals being used for the agricultural activities as well as the agricultural crops such as cotton, weed, etc to which chemicals are applied. Here, soybean holds the largest market size on the basis of application as it is the primary crop of Brazil occupying 5 million hectares plantation area and contributing to almost 52% of the total agricultural market. 

Along with this, Brazil is the world’s largest exporter of soybeans. As the type of product is considered, herbicides hold the largest market size. The market value of the agrochemicals by the type of chemicals and application are summarized as below:

Market Outlook

Brazil Agrochemicals market is expected to grow at the rate of 6% during the forecasted period from 2017-2022 because of the booming population, increasing demand for food products and land productivity. 

Distribution Chain Analysis

In Agrochemicals market, major stakeholders engaged are agrochemical industry, distributors, farmer, and trading. It is the cyclic trend until and unless demand for the agrochemicals is fulfilled.

It is initiated with the production of the chemicals for agriculture which are distributed by retailers, cooperative or distributor to the farmer for the utilization.

Competitive Landscape

There are 161 registered agricultural products in Brazil.

On the basis of the type of the chemicals, herbicides hold the largest market share of 35% with market sales of USD 3.1 billion.

On the basis of application, almost 52% of market share is held by the soybean production with USD 4.6 billion revenue.

Key Market Players

  • Syngenta: It is a leading agricultural company committed to addressing critical challenges that the world faces to achieve food security.
  • Bayer CropScience: It is focused on innovative crop solutions as well as seeds and traits to increase productivity. 
  • BASF SE: It is the second largest producer and marketer of chemical products for a sustainable future. 
  • FMC: FMC chemistries is an American chemical manufacturing company who assist to grow the food, improve health, and enhance food production.
  • Dow Agroscience: It is a manufacturing company producing agricultural chemicals such as pesticides. Along with this, it is a specialized company focusing on the development of seeds and biotechnology solutions.
  • Nufarm: It is an agricultural company present in more than 100 countries. In Brazil, it offers farmers a wide portfolio for crops such as coffee, citrus, etc.
  • Fertilizers Southwest: It is a company working in the fertilizer market established in 1999. 

Strategic Conclusion

Brazil Agrochemicals market is in the growth stage and is expected to grow at the CAGR of 6% within the time period of 2017-2022.

However, an increasing number of chemical intoxication and environmental concerns associated with its overuse might restrain its growth. So, market players should focus on the production of organic pesticides.




  • USD= United States Dollar

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